A BPO is an important part of a short sale package that is often left out by the listing agent. Some lenders will approve a short sale offer based only on the BPO done by the listing agent.

Lenders will typically pay $50-$95 per BPO, which can be a good way for an agent to supplement their income or even set up a side business.

Agents who perform BPOs are often given listings for bank owned properties from the lenders or asset managers.

There are many different asset management and valuation companies who are constantly looking for good agents in ALL areas of the country. CLICK HERE for a very large list of different companies who are looking for an agent. Our list is updated regularly for Preferred Partner Members of The Short Sale Specialist Network. This list is extremely valuable to any agent doing broker price opinions or trying to get REO listings.

A couple of the larger companies such as www.equator.com and www.res.net do charge a little money for membership usually based on zip codes. These companies are also grading agents based on performance.

Interior BPOs – An interior BPO will typically require quite a few pictures. It is a good idea to take pictures of EVERY room in the subject property, the exterior, as well as pictures of any damage to the property or areas in need of repair.

Exterior BPOs – Exterior BPO’s are also sometimes referred to as “Drive By BPOs”. These are typically less detailed valuations that are done without visiting the inside of a property.

Desktop Valuations – Just a generic valuation done without even visiting the subject property.

If you are doing a BPO for one of YOUR listings, make sure you only use other “As-Is” comps, such as short sales and foreclosures if possible. Also make sure you photograph any repairs that may be needed now or in the near future, and give generous adjustments for the repairs.

Lenders or asset management companies often times set specific guidelines on what they expect to be included in the BPO’s. Lenders or asset managers will sometimes return BPOs that are not done correctly. Pay close attention to the specific requirements for the BPO, and try to follow them to the best of your ability.

There will also likely be a section for additional comments. This is where you can express your personal opinions about the property and value. This is your opportunity to stray away from any specific lender guidelines and say what you believe the property may really be valued at.

When another agent contacts you to do a BPO, it is ideal to meet them at the subject property. Make sure you show them your BPO as well as any needed repairs to the property in order to justify any offer.

Some lenders do NOT do BPOs for short sales, but will instead use an appraiser. You should still give a copy of your BPO to the appraiser to show them some of the things you notice.

Practice makes perfect! It will take you some practice to learn how to do them effectively and efficiently.